The relationship between Etihad and Lufthansa has turned around significantly over the past year, thanks entirely to airberlin. Etihad has invested in airberlin, airberlin has been in a bad financial situation, and Lufthansa is helping out airberlin (for selfish reasons, of course). To expand on that a bit:
Continue reading: Rumor: Etihad & Lufthansa Are In Merger Talks
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How would a full merger be possible? EU airline ownership laws limit non-EU ownership to 49%...
Very interesting development. On a slightly unrelated note, no one in your comments really mention this but I really appreciate that you always provide context within your posts before diving into the actual news item. It's very helpful and many other blogs/outlets would be well served to do this as well.
that would be awesome to have Etihad in Star Alliance. Qatar already being in Oneworld, Emirates (SKYwards)SKYteam anyone?
Mileage Man..Great point on the fact that this could result in them joining the Star Alliance. If I remember correctly, Qatar and Royal Jordanian used to be a part of the alliance, but since they left there has not really been an option like Etihad.
@ Dan -- That might eventually be possible, but it's way premature at this point.
"Etihad’s strategy of investing in foreign carriers hasn’t really paid off much [...] Qatar Airways has been investing in British Airways, and has been quite successful with that so far." Curious how you measure this success for each?
@ HITconsultant -- On the most basic level, British Airways is actually making money, so Qatar Airways is getting some return on their investment there. That's not to say that the money couldn't be better invested elsewhere, but they're at least not losing money on it. Meanwhile in the case of Etihad, airberlin, Alitalia, Air Serbia, and Jet Airways, are all losing money. So I think it's safe to say that they're not getting much of an ROI. 😉
@Adam, Qatar Airways had a code share partnership with Lufthansa. However, Qatar Airways was NEVER part of Star Alliance.
Regards,
Scott
Would that mean an exit of the Lufthansa Group airlines (Lufthansa, Swiss, Austrian, Brussels) from the Star Alliance.....OR......Etihad entry into the Star Alliance?
Considering that none of Etihad's current investments are in the Star Alliance - I worry A LOT !
49% of Air Serbia
49% of Alitalia
40% of Air Seychelles
33% of Darwin Airline (now Etihad Regional)
29% of airberlin
24% of Jet Airways
24% of Virgin Australia
As @Mike said, under the current regulations a merger is simply not possible. Under the current political climate do you really think EU would relax those regulations for a UAE-based company? No way...
and here it is denied again
http://www.reuters.com/article/us-lufthansa-etihad-idUSKBN151100